The hidden economics of ride share: A strategy map

We take ride share for granted — open the app, choose a ride, swipe, done. But behind that simple interface is a complex and fast-evolving battle of economics and experience.

The recent Mary Meeker chart of the Waymo market share in San Francisco was linearly extrapolated into the future by Peter Gostev:

This begs a number of questions:

- Cost per mile: What does it take to deliver the ride?
- Perceived value: What does the rider get ?
- Price: What are consumers paying today for the value?

What It Really Costs to Move One Person One Mile

Most people don’t know what it really costs to run a ride. But under the hood, there’s a different story playing out — one where variable costs, fixed assets, and scale economics define who will win the future of mobility.

The current ride share leaders such as Uber and Lyft are variable-cost platforms where the drivers own the car and cover fuel, depreciation, and insurance, and the platform providers take ~20–30% of the fare. For the drivers, there is little to no scale efficiency per ride.

The Waymo cost base has high fixed upfront cost that are amortized over massive ride volumes. The cost per mile falls dramatically as usage increases.

Cost curves tell you who can win on price.

Which ride is actually worth your money?

Not all rides are created equal. Some offer luxury that doesn’t feel that luxurious. Others cost more but remove the driver entirely. Some are just cheap — and feel that way. So how do we make sense of all the options in rideshare?

You can map this out using a simple lens: value vs. price.

• Price = what you pay per mile
• Value = what you get for it (safety, predictability, speed, comfort, novelty)

When plotted, this reveals how well each product serves its customer relative to its price.

UberX and Lyft remain the sweet spot for mass-market utility. Other models such as MILES short term rental of the myriad of offerings by the incumbents serve a wide range of niche demands - and these niches can be quite large on their own. Waymo today justifies its premium in some markets — especially for safety- or tech-conscious riders.

To wrap up: The industry cost curve tells us who can scale profitably. Value-to-price tells us who earns customer love.

Put together, and we get the strategic battlefield for the future of mobility.

Ambition is a vice, but it may be the father of virtue

Source: AZ Quotes

Ambition is a complex trait, often viewed through different lenses. In contemporary culture and business, ambition is portrayed as a driving force for improvement and impact. When coupled with ethical principles, empathy, and a clear purpose, ambition can foster innovation, growth, and effective leadership, qualities that are widely admired.

However, classical philosophy, particularly Stoicism, offers a contrasting perspective. In Stoic philosophy, unchecked ambition, leading to ego, restlessness, or a relentless pursuit of external validation, can be considered a vice. The Stoics prioritized inner virtues like wisdom, justice, courage, and temperance over external markers of success such as fame or wealth. They believed that tying one's well-being to uncontrollable external factors could be perilous.

Ultimately, whether ambition is virtuous hinges on its alignment with values and intentions. If ambition is driven by self-centered motives or personal gain at the expense of others, it leans towards vice. Conversely, when ambition is rooted in a sense of purpose, accountability, and a commitment to the welfare of others, it transforms into a moral strength.

In conclusion, ambition, in isolation, is not inherently virtuous. Its virtue lies in its alignment with noble values and aspirations, guiding it towards serving a higher purpose or the common good.

Reentry: Elon Musk's ever increasing ambition

In Reentry: SpaceX, Elon Musk, and the Reusable Rockets that Launched a Second Space Age, Eric Berger delves into Elon Musk's pivotal role in transforming SpaceX from a fledgling startup into a dominant force in space exploration.

I was amazed by SpaceX’s sheer speed—how fast the teams moved, how quickly they iterated, always pushing forward while accepting some risk. The insane work ethic. And the at times real and sometimes artificially im posed penny-pinching approach to budgets.

But what struck me most was how Musk’s ambition kept multiplying. With every step forward, even before the last one was fully wrapped up, his vision grew bigger, already reaching for the next level before they’d even landed the last. That unwavering ambition is highlighted in Berger's narrative and can be categorized into his mindset, behaviors, and actions:

Ambitious Mindset

Elon Musk’s mindset is defined by an  implausible vision: not just building rockets, but making life multiplanetary. In Reentry, Eric Berger shows how Musk questions long-held aerospace assumptions—especially the idea that rockets can’t be reused—by blending a startup’s speed with a futurist’s ambition. He treats risk as fuel for innovation, creating a culture where failure isn’t feared but welcomed as part of learning. This kind of thinking drives SpaceX’s boldest leaps and frames ambition as both necessary and non-negotiable.

Ambitious Behavior

Musk doesn’t just talk about vision—he operates inside it. He stays deeply involved in engineering challenges and pushes his teams with relentless intensity. Berger portrays him as a leader who expects from others what he gives himself: full commitment, long hours, and total focus. His management style is aggressive but purposeful—launching massive, parallel initiatives like Starship and Starlink with full awareness of their complexity. He thrives in this kind of pressure, and he builds a company culture that does too.

Ambitious Actions

These behaviors translate into groundbreaking actions that redefine spaceflight. Under Musk’s leadership, SpaceX engineers and launches the Falcon 9, the first orbital-class rocket that flies, lands, and flies again—reshaping the economics of launching anything into orbit. Berger details how Musk wins critical NASA contracts, gaining not just funding but credibility in an industry built on institutional trust. He also secures access to iconic launchpads like Cape Canaveral, outmaneuvering legacy aerospace players and positioning SpaceX at the heart of a new space age.

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Berger's account in Reentry portrays Musk as a figure whose extraordinary ambition—manifested through a visionary mindset, assertive behaviors, and groundbreaking actions—has forever altered the possibilities of space exploration.

This article was first post on LinkedIn on May 13, 2025